The purpose of the study are as follows to determine how the development bank have helped to provide finance to small-scale industries as start up or working capital for the business.
To determine how Nigeria banks help to procure machines and equipment for small-scale industries either through leasing or here purchase to encourage massive production.
To determine how development bank has helped to provide technical and managerial expertise including undertaking of feasibility of consultancy arrangement.
To find our how the development banks will be able to provide adequate raw material for the small-scale industries to encourage massive production so that they will be able to compete with the large scale industries.
TABLE OF CONTENTS
Title page ii
Approval Page iii
Acknowledgement iv
Dedicated v
Table of Contents vi
Proposal vii
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Purpose of the Study 5
1.4 Definition of Terms 6
1.5 Scope of the study 7
1.6 Limitation of Study 8
CHAPTER TWO
2.0 Review of Related Literature 9
2.1 Nature and Characteristics of the Nigeria 12
2.2 The Role of Small Scale Enterprises 15
2.3 Advantages of Small Industries in Nigeria 17
2.4 Major Disadvantages of Small Scale Enterprise 21
2.5 Review of Main source of Financing 23
2.6 The Role of Government in Finance and Promotion 25
2.7 Option for Improved Access to Credit 26
CHAPTER THREE
3.0 Research Design and Methodology 30
3.1 Research Design 30
3.2 Area of the Study 31
3.3 Population of the study 32
3.4 Sample and Sampling Procedure Techniques 32
3.5 Instrument for Data Collection 33
3.6 Method of Data Collection 34
3.7 Method of Data Analysis 34
3.8 Validation of Instrument 35
3.9 Reliability of the Instrument 35
CHAPTER FOUR
4.0 Data Presentation and Analysis 36
4.2 Summary of the Results 44
CHAPTER FIVE
5.0 Findings 46
5.2 Conclusion 46
5.3 Recommendations 49
Bibliography
Appendix
INTRODUCTION
Industrial development involves development of a technical arrangement that moves on economy from the traditional method of production to a more complex system of mass manufacturing of verity of goods of services involving technology and management techniques.
Industrialization tends to propel growth adequate the achievement of structural transformation and diversification of economy. It enable a country to utilize it’s factor endowment and depends less on external sector for its growth and sustenance. They provide employment for a substantial proportion of the industrial establishment. Therefore due to the above mentioned role played by industrial sector, that is small-scale industrial in the economy, it requires some financial support from government for the smooth running of the industrial.
But small-scale industries is a sub-sector of development that is of great importance as mentioned above, but it has not received the types of attention it deserves that is why the government and the Federal Ministry of industries lay-down the parameter under which a industrialist may take advantage of the various incentive erected by the government for the growth of the small-scale industries. Such incentives are in the form of loan provision of machinery and raw materials.
The process of taking advantages of the various incentive scheme are so cumbersome and its subject to bureaucratic radicalism and only few small-scale industries are able to utilize them.
The importance of small-scale industries to the survival of a nation can no longer be saved. They have moved from the substance level to pre-indigenization period of importance in the country’s industrial process. Therefore the authorities should not relent on the inactive due to lack of fund.
The Nigeria Bank was established to provide among other financial services to the indigenous business community, especially small sale industries of the recommendation of the financial system review committee of 1976 government made bank the apex financial institution for small-scale business. The bank obtains fund from the federal government to assist small business and the loan granted are relating on soft terms. During the 1970s and 1980 banks promoted of soft loans and advisory services of operational and liquidity problems attributed to reduced government funding and poor loans repayment by medium scale entrepreneur. Bank loans and advances fluctuated from N984 million, N223 millionm, N305.3 million, N87,7 million and 1994 respectively similarly, it’s deposit liabilities fluctuated from N252 million. In 1990 to N423.3 million in 1991 N318.7 million in 1992 and N320 million in both 1993 and 1994 following this, the government utilized the opportunity equip it banks with power to act as catalyst in development by operating like an all purpose universal bank to engage in all types of investment banking and under writing operation.